The consequences of Covid-19 are greatly affecting business owners across America. The need to shift on site staff to work from home offices has left managers scrambling to find business solutions that support their remote team members. A cloud-based SaaS solution, rather than an on-premise option, may answer at least part of the remote office dilemma. You already know that SaaS applications offer advantages when it comes to speed, agility, and scalability. But can they save you money? Here are some of the ways to realize cost savings with a SaaS solution.
Lower your start-up costs
On-premise solutions require a costly up-front license fee that is generally large enough to be considered a capital expense. But when software is delivered as a service, you eliminate the up-front lump sum payment by subscribing to the software rather than licensing it. In addition, you don’t need to invest in a server to run the software; your solution provider carries that cost.
Lower up-front investment also reduces your opportunity cost by freeing up capital that can be invested in your company’s core business initiatives.
Eliminate hardware and infrastructure costs
Since the software doesn’t reside at your location, a SaaS solution eliminates the need to invest in new servers. And you eliminate the cost of obsolescence, since you’re not purchasing the hardware to run the platform. You also reduce the burden on your existing hardware, delaying or even eliminating the need to upgrade. And delivery via the cloud allows you to invest in less expensive end-user devices such as mobile phones and tablets.
Make more cost-effective use of your IT staff
Without the need to maintain hardware and other infrastructure, you can streamline your IT department by eliminating functions such as a help desk. Better yet, you can redeploy valuable IT staff to more strategic, value-added activities.
Save on upgrades
With a SaaS solution, receiving upgrades is not only easier, it’s less expensive. Upgrades are pushed to you automatically via the cloud, rather than having to rely on costly and cumbersome on-site processes.
In addition to saving on the cost of the upgrades themselves, you also eliminate the lost opportunity cost since you’re able to implement innovations more quickly. With on-premise solutions, you may put off implementing upgrades in order to avoid the associated costs – leading to a system that doesn’t provide you all the power and functionality you need.
At MicroAccounting, we offer a wide range of SaaS solutions, including Sage 100 and Sage Intacct. Ready to see if a SaaS solution can save you money? Call us today at 855.876.3773 or email us at firstname.lastname@example.org to find out more.